Trung Nam Group tops out last support of Muong Chuoi floodgate

Trung Nam Construction Investment Corporation (Trung Nam Group) has topped out the last support of Muong Chuoi floodgate in the outlying district of Nha Be.

The structure is part of a VND10-trillion tidal flood control project with climate change taken into account.

Built along the Muong Chuoi River, the 200-meter-wide floodgate is 1.4 kilometers from the T-junction of the Soai Rap River and 500 meters from the Muong Chuoi Bridge on Nguyen Binh Street in Nha Be District.

Nguyen Tam Tien, general director of Trung Nam Group, said construction work on the floodgate is eight months ahead of schedule despite a slew of difficulties in the construction process.

The first phase of this major project which started in June 2016 is aimed at putting tidal floods under control in a 570-square-kilometer area that is home to about 6.5 million people. The project is 68% complete and scheduled for completion this April.

The project comprises six major floodgates – Ben Nghe, Tan Thuan, Phu Xuan, Muong Chuoi, Cay Kho and Phu Dinh – whose width is from 40 to 160 meters each.

Besides, three pumping stations are being developed at Ben Nghe, Phu Dinh and Tan Thuan floodgates with respective capacities of 12, 18 and 24 cubic meters per second.

The investor is building a 7.8-kilometer embankment along the Saigon River from the Vam Thuat River to the Kinh River, plus 25 sluice gates measuring one to ten meters in width from the Vam Thuat River to Muong Chuoi.

The project passes through districts 1, 4, 7, 8, Nha Be and Binh Chanh with a total area of 100 hectares. Over 300 households with more than 1,500 people must be relocated to make room for it.

Once completed, the VND10-trillion project will help control flood tides on the right bank of the Saigon River and in downtown HCMC, regulate water levels in canals, improve water drainage, and create landscapes.

WB-funded projects spur development in Can Tho

Projects in Can Tho City funded by the World Bank (WB) have helped boost the city’s economic development and increase the quality of life, according to the Can Tho government.

Speaking at a meeting with the WB last Friday, Can Tho vice chairwoman Vo Thi Hong Anh said the WB has played an important role in the city’s development over the years.

In the first two urban upgrade projects, Can Tho has been assisted in mapping out a development strategy. It has achieved good growth and higher quality of life, and seen budget revenue rising from VND4-5 trillion per year before the projects were implemented to VND14 trillion per year, according to Anh.

Anh said investments in the city, especially in healthcare and education, have increased thanks to better infrastructure. 

Data of the Can Tho Trade, Investment Promotion and Exhibition Center showed the city attracted 77 foreign direct investment (FDI) projects worth US$656.8 million as of late last year. Of such an amount, realized capital accounted for US$422 million.

According to the Can Tho Department of Industry and Trade, total retail sales amounted to over VND106 trillion last year, up VND10.4 trillion against the previous year. The city ranked third in goods retail sales nationwide, behind HCMC and Hanoi.

Can Tho expected the third project implemented in 2015-2021 will give a fresh boost to the development of the city and the delta as a whole. The project has an investment of over US$322 million, with some US$250 million lent by the WB, a US$10 million grant of the Swiss State Secretariat for Economic Affairs (SECO) and the city’s reciprocal capital accounting for the remainder.

This project is expected to promote the efficiency of the previous two infrastructure projects, targeting the development of the entire Mekong Delta, Anh said.

According to country director for the WB in Vietnam Ousmane Dione, the third project in Can Tho can help the city improve its competitiveness and attract more investments.

The WB also wants Can Tho to have better resilience to climate change, but the crucial thing is to ensure what was agreed will be implemented successfully, he said.

Funding for Rach Mieu 2 bridge project undecided

The Prime Minister has not made a final decision on funding for the Rach Mieu 2 bridge project in the Mekong Delta.

After a meeting on funding solutions to the project in Hanoi on January 24, Trinh Truong Hai at the Project Management Unit 7 under the Ministry of Transport told the Daily that the PM had directed the implementation of the project under build-operate-transfer (BOT) format.

Local authorities proposed using official development assistance (ODA) or concessional loans to finance the bridge which will connect Ben Tre and Tien Giang provinces.

Ben Tre Province chairman Cao Van Trong had earlier written to the PM proposing seeking loans for the project.

The province and the Project Management Unit 7 had worked with BOT Rach Mieu Bridge Co Ltd which is implementing a project to expand four sections of National Highway 60 to find an investment solution to the Rach Mieu 2 bridge project. The province had also called for several investors to get involved in the project but they had stayed away as the project would need big money and a long period for capital recovery.

The provincial government, citing the pre-feasibility study conducted by South Korea’s Dasan Consultants, said it is unsuitable to develop the project under BOT format as four sections of National Highway 60 are being widened in BOT mode.

According to the pre-feasibility study, the project will require more than VND4.4 trillion (US$193.7 million).

The Project Management Unit 7 had also proposed the Ministry of Transport four locations to build Rach Mieu 2 bridge, with one of them 3.8 kilometers upstream the current Rach Mieu Bridge seen as the most feasible. The new four-lane bridge will be shorter than the current Rach Mieu Bridge if it is built at the most-preferred site.

The location is ideal as it is convenient to connect to HCMC-Trung Luong Expressway while a bypass is not required in the construction process. River flow will not affect the implementation of the project due to the long distance from the Rach Mieu Bridge.

Tax policy brings huge profit to fuel traders

Unreasonable tax policy has benefited major fuel traders but caused losses of trillions of Vietnam dong for the State budget, State Audit Office of Vietnam (SAV) audits have found.

SAV auditors looked into the management and use of the fuel price stabilization fund in the 2015-2016 period.

Regarding the fuel price adjustments in 2015 and the first five adjustments in 2016, the Ministries of Industry-Trade and Finance imposed the Most Favored Nation (MFN) import duties (20%) on the fuel prices, leading to an increase in the fuel base prices and thus generating large profits for major fuel traders.

According to SAV, 10 major fuel traders that were audited earned an additional VND3.3 trillion (US$145.3 million) as a result of this tax policy.

The imposition of a weighted average import tariff in the last fuel price adjustment in March 2016 was deemed as more reasonable but it was a temporary move, helping 10 major fuel traders earn more than VND1.4 trillion from tariff differentials.

Those fuel traders enjoying a tariff of only 10% for fuel imports from ASEAN countries under the ASEAN Trade in Goods Agreement (ATIGA) benefited the most. This made their base prices lower than those announced by the ministries, helping them pocket an extra VND4.8 trillion. Vietnam National Petroleum Group (Petrolimex) alone got about VND3 trillion.

To deal with shortcomings in the process of determining fuel base prices and to prevent tax evasion, SAV said the two ministries should set more reasonable import tariffs for fuels.

SAV said these ministries also failed to set an accurate special consumption tax, making the differential between special consumption tax and value-added tax (VAT) in July and August 2016 amount to more than VND216 billion.

Using an unreasonable foreign exchange rate for calculating special consumption tax, import tariff and VAT led to losses of VND214 billion in 17 fuel price adjustments.

The ministries also failed to announce the base prices of RON 95 gasoline and diesel oil 0.25S oil, which allowed fuel traders to freely fix retail prices at the expense of consumers.

Although fuel traders earned more than VND4.8 trillion from the tax policy in 2015 and 2016, SAV requested traders to pay an additional VND252 billion in tax.

SAV asked the Ministry of Finance impose a single tariff rate, possibly 0%, and adjust the special consumption tax on fuel imports to control fuel prices more effectively and prevent tax evasion.

The fuel price stabilization fund should be used in a more effective manner and the ministries should not allow trading firms to tap the fund to lower fuel prices in the long run.

Effective management of mining key to development

The effective management of mining activities will foster comprehensive development as it helps increase state budget collection and improve environment quality and livelihoods of local people.

Trinh Le Nguyen, Director of the People and Nature Reconciliation (PanNature) centre - a Vietnamese non-governmental organisation, made the remarks at a conference held in Hanoi on January 30.

Evaluating the Resource Governance Index in 2017, Jelson Garcia, Director of the Natural Resource Governance Institute for Asia-Pacific, said that the tight control of oil exploitation and mining activities was rarely seen in Vietnamese localities.

Vietnam had weak resource governance, he said, adding that the country has a mix of strong and problematic areas of governance, which means resource extraction can help society but it is likely that the eventual benefits are weak.

At the conference, experts suggested measures to build a rational governance model for the comprehensive development of Vietnam’s mining industry. 

They said that the Government of Vietnam should place focus on enforcing environmental regulations, protect benefits of local people and distribute incomes to localities.

Stronger pre-Tet production supports industrial growth in January

The Index of Industrial Production (IIP) in January surged 20.9 percent from the same period of 2017, boosted by the Lunar New Year festival (Tet) not coinciding with the month and businesses’ production enhancement to serve soaring pre-Tet demand.

According to the General Statistics Office (GSO), processing and manufacturing grew 23.8 percent and electricity production and distribution expanded 15.4 percent. Mining posted a 10.5 percent growth while water supply and waste and wastewater treatment rose 6.8 percent year on year.

Some sub-industries with high growth rates in January include metal ore mining (52.5 percent), production of electronic products, computers and optical devices (38 percent), mining of hard coal and lignite (29.1 percent), metal production (27.1 percent), apparel production (25.8 percent), and textile (23 percent).

Among localities with a big industrial sector, Da Nang city recorded a 48-percent rise in its IIP, Bac Ninh province 47 percent, Hai Phong city 31 percent, Quang Ninh province 29 percent, Quang Nam province 26 percent, Ho Chi Minh City 15 percent, and Hanoi 14 percent.

At the beginning of this month, the number of workers in industrial businesses increased by 4.2 percent from a year earlier. While the worker number in State-owned companies declined 1.3 percent, it expanded 2.4 percent in non-State firms and 5.8 percent in foreign direct invested ones, the GSO said.

First Solar gets equipment delivery

First Solar Vietnam, a global manufacturer of photovoltaic systems, on January 30 received the first consignment of equipment for manufacturing its series 6 photovoltaic module at the Dong Nam Industrial Zone in Ho Chi Minh City.

The equipment that arrived is a primary component for a vapour transport deposition coater, a machine that applies semiconductor material to glass.

The series 6 will debut with an anticipated 445-watt generation capacity and 18 percent conversion efficiency.

Speaking at the equipment welcoming event, Chan See Chong, managing director of First Solar Vietnam, emphasised the important role of the company’s Vietnam facility to its future.

The company has invested an additional 360 million USD to build a second factory also in the Dong Nam Industrial Zone, taking its investment in the country to 830 million USD.

Production is expected to start in the last quarter of this year.

When the two plants are operational, they will have a capacity of 2.4GW of series 6 modules annually.

High-tech shrimp farming area constructed in Bac Lieu province

Prime Minister Nguyen Xuan Phuc (C) released shrimps in a greenhouse of Vietnam-Australia Group 

Prime Minister Nguyen Xuan Phuc attended a ceremony to launch the construction of a high-tech agricultural area specialised in shrimp development in the Mekong Delta province of Bac Lieu on January 30 as part of a local investment promotion conference. 

The area will cover 418.91 hectares in Hiep Thanh commune, Bac Lieu city, with total expected investment of 3.2 trillion VND (140.4 million USD).

The locality has big ambitions of becoming a national shrimp industrial hub.

The area will serve as a centre linking with institutes, schools and businesses using high technology in shrimp breeding, creating a chain from producing parent shrimp and varieties to super-intensive farming, processing, preservation and food production research.

According to Chairman of the provincial People’s Committee Duong Thanh Trung, after the ceremony, more than 20 businesses registered to invest in the shrimp farming area, while many institutes and schools signed agreements to connect, transfer and apply advanced technologies. The total registered investment amounted to more than 2.6 trillion VND (114.1 million USD).

He called for more assistance from the Government, ministries and businesses to build high-tech shrimp farming models to aid local development.

Minister of Agriculture and Rural Development Nguyen Xuan Cuong said the area will help expand high-tech shrimp breeding across the region along with 28 shrimp-breeding cities and provinces nationwide, contributing to realising the country’s shrimp export target of 10 billion USD in 2021-2025.

PM Phuc urged the province to accelerate the construction of the area to put it into operation as soon as possible.

The same day, the PM attended a ceremony to release shrimps in a greenhouse of Vietnam-Australia Group and build a symbol of Vietnamese shrimp.

Bac Lieu has an aquaculture area of 1,290 sq.km. With a coastline of 56 km, three seaports and an economic exclusive zone of 20,742 sq.km, the province has favourable conditions to develop agriculture, fishing and fishery logistics. 

Agriculture accounts for 43.14 percent of the province’s gross regional domestic product. Each year, the locality harvests about 210,000 tonnes of aquatic products, of which 115,000 tonnes are shrimp, with shrimp export turnover exceeding 527 million USD.

Hanoi earns 1.1 billion USD in exports in January

Hanoi’s export turnover hit 1.1 billion USD in January, a year-on-year increase of 24 percent, heard a press conference in the city on January 30. 

According to Chief of the municipal People’s Committee Office Pham Qui Tien, the city’s socio-economic development was stable, with most development indexes higher than in January of 2017. 

The city’s industrial production index increased by 14.7 percent in the period. 

Hanoi welcomed 373,000 foreign tourists, 34.8 percent more than in January last year.

The municipal authority approved two off-budget investment projects worth 2.4 billion VND (105.3 million USD). At the same time, 62.77 million USD in foreign direct investment was poured into the city in the month. 

As many as 1,911 enterprises were established with total investment of more than 16 trillion VND in January.

More turbines installed for Bac Lieu Wind Power Plant

The installation of 71 turbines in the third phase of the 8.9 trillion VND (391.6 million USD) Bac Lieu Wind Power Plant began in Vinh Trach Dong commune, the Mekong Delta city of Bac Lieu, on January 30.

This phase is part of efforts to enhance trade and investment ties between Vietnam and Thailand. 

With the new turbines, the project will house a total of 133 turbines with total capacity of 241.2 MW. The third phase alone has a capacity of 142 MW. 

The project is in line with the national electricity development planning during 2011-2020 with a vision towards 2030 and the Bac Lieu wind power development planning to 2020 with a vision towards 2030. 

Speaking at the ceremony, Thailand’s Deputy Prime Minister Wissanu Kreangam congratulated Super Wind Energy Cong Ly JSC, the project’s investor, on the success of the first and second phases, expressing his hope that the third phase will be put into operation successfully. 

Vice Permanent Chairman of the Bac Lieu province People’s Committee Le Minh Chien asked Super Wind Energy Cong Ly JSC and its partners to focus resources for the construction to ensure its progress and quality. 

Bac Lieu promises to create the best possible conditions for the construction and operation of the project, he said. 

Once operational, the plant is expected to provide 373 million kWh for the national grid and generate more than 1,000 jobs.

Vietnam has 28 coastal localities, including 14 central cities and provinces having the coastline.

Therefore, it has great potential for wind power, estimated at about 10,000 MW, according to research by the German International Cooperation Agency (GIZ).

The Ministry of Industry and Trade said that Vietnam now has only six operating wind energy mills with a total capacity of nearly 200MW. 

The Government has released its National Electricity Development Plan for 2011-2020 with a strategic priority on renewable energy, with wind power capacity targeted at 800 MW by 2020 and 6,000 MW by 2030.

The country’s energy demand has increased rapidly over the last 15 years, with a commercial energy growth rate of about 9.5 percent each year. It is forecast to continue rising strongly in the next 15 years. The country’s electricity consumption demand grew about 13 percent annually from 2006 to 2010 and 11 percent each year between 2011 and 2016.

In 2015, total energy consumed nationwide was estimated at 55 million tonnes of oil equivalent. 

Under the national energy development strategy until 2020 with a vision to 2050, Vietnam aims to produce and import 100-110 million TOEs of primary energy by 2020 and 310-320 million TOEs by 2050 so as to meet socio-economic development demand.-

Jetstar Pacific offer 30 second kiosk check-ins for flights

Low-cost airline Jetstar Pacific officially brought their automatic check-in kiosk system online at airports on February 1, allowing passengers to check-in in 30 seconds without lining up for long check-in queues.

This is a modern check-in technology introduced by Jetstar Pacific following the earlier implementation of its web check-in system.

Accordingly, passengers need only take three simple steps at the automated check-in kiosks by entering their reservation code, checking the flight information, and printing off a boarding pass before proceeding to the security gate. Total check-in time is just 30 seconds.

Nguyen Quoc Phuong, JestarPacfic CEO said many passengers responded positively to the new system on the first day, noting that the check-in kiosks help save time for passengers and reduce long-queues at the airport, especially during peak times around the Lunar New Year festival.

At present, check-in kiosks have been installed at Tan Son Nhat Airport to meet passengers’ growing demand for travel during Tet. Jetstar Pacific has also urgently deployed the system at Noi Bai International Airport and Da Nang to serve passengers in the near future.

Apart from the traditional check-in process, passengers can check-in at the website www.jetstar.com up to 48 hours before departure or use Ipad check-in services over the wi-fi available at Tan Son Nhat, Noi Bai and Da Nang airports.

Jetstar Pacific is Vietnam’s first low-cost airline which operates 29 domestic and 9 international routes, connecting to Jetstar Group’s network and linking to 82 destinations in 18 nations.

Exports of phones and components surge by 80% in January

In January 2018, exports of telephones and components reached US$4.2 billion, an impressive rise of 80.7% against the same period last year.

According to the General Statistics Office, export turnover in commodities for January is estimated at US$19 billion, down 3.3% on last month. However, compared to the corresponding period of last year, the figure saw a dramatic increase of 33.1%, with the private economic sector rising by 31.6% and the foreign-invested sector (excluding crude oil) expanding by 33.7%.

Commodities experiencing a rise in export turnover included telephony and components (US$4.2 billion), garments and textiles(US$2.3 billion), electronics, computers and components (US$2.2 billion), footwear (US$1.3 billion), machinery and spare parts (US$1.1 billion), wood and wooden products (US$730 million), vehicles and spare parts (US$620 million), coffee (US$340 million), and fruit and vegetables (US$320 million).

Some other goods saw a decline in export turnover, such as rubber (US$169 million) and pepper (US$51 million).

China remains Vietnam’s largest buyer of export commodities with turnover reaching US$4.5 billion in January, trailed by the US, the EU, ASEAN, Japan, and the Republic of Korea.

Gas price down VND1,667 per kg in the south from February 1

The retail price of gas in southern localities, including Ho Chi Minh City, will reduce by VND1,667 (US$0.07) per kg or VND20,000 (US$0.88) per 12kg cylinder from February 1, in comparison with that of January.

Consumers can buy a 12kg cylinder of PetroVietnam Gas, Vtgas, SP or Petrolimex at a price between VND330,000 and VND335,000.

The decrease is attributed to a fall in the world’s gas price in February, which stands at US$515 per tonne, down US$65 per tonne compared with that of January.

The new price level has been announced to gas business agents and consumers in the southern region.

Sabeco reports massive revenue and profit in fourth quarter of 2017

Saigon Beer, Alcohol and Beverage Corporation (Sabeco) reported a net revenue of VND10.4 trillion ($442.1 million) and after-tax profit of VND1.37 trillion ($60.3 million) in the fourth quarter of 2017, signifying increases of 17 and 29 per cent, respectively, according to statistics published by Sabeco.

According to the Sabeco board of directors, the increase in beer consumption as well as the adjustment of the beer selling price increased the corporation’s revenue and profit.

With the positive fourth quarter business results, Sabeco reported the accumulated net revenue of VND34.5 trillion ($1.52 billion) and after-tax profit of VND4.64 trillion ($204.3 million) throughout the year, signifying respective increases of 12 and 9 percent.

In the fourth quarter of 2017, Sabeco spent an average VND3.1 billion ($136.5 million) per day for advertisement and promotion programmes.

As of December 31, 2017, Sabeco suffered VND5.15 trillion ($226.8 million) in debts, up VND1.87 trillion ($82.3 million), with VND5.047 trillion ($222.2 million) in short-term debts.

According to the statistics of the Vietnam Beer Alcohol Beverage Association (VBA), in 2017 Vietnam consumed 4 billion litres of beer, up 6 per cent on-year. Sabeco alone sold 1.73 billion litres of beer, up 8 per cent on-year.

ThaiBev, the owner of a 53.56 per cent stake in Sabeco, announced plans to sell between 1.85 and 2 billion litres of beer and increase Sabeco’s market share to 50 per cent this year.

Koh Poh Tiong, chairman of F&N—a member company of Thai Beverage Public Company Limited (ThaiBev)—said at the meeting organised to summarise the business results of 2017 and the development plan for 2018 that being the largest shareholder of Sabeco, F&N will support the corporation to become the leading brewer in Vietnam.

F&N will take Sabeco’s products into F&N’s distribution system in Vietnam and other countries, and simultaneously increase Sabeco’s beer sales in Singapore, Thailand, and Vietnam.

Vinasun to take Grab to court over ‘unhealthy competition’

Vietnam’s top taxi firm Vinasun is taking the Vietnamese branch of the Malaysia-based ride-haling firm Grab to court over “unhealthy competition”.

Vinasun is suing GrabTaxi Vietnam under the country's competition law, a representative told VnExpress.

The company said it has documents, photos and videos to prove that Grab has violated the law by dumping its service on the local market.

One of the most convincing charges is that GrabTaxi Vietnam ran promotions for more than 90 days in a year, which is against the law.

In a letter sent to the Prime Minister last year, Vinasun said ride hailing firms, including Uber from the US and Grab, repeatedly ran promotions without gaining permission from authorities.

Other countries like Thailand, Indonesia and Japan have either banned or tightened their management of Uber and Grab after concluding that the two companies have been operating as “disguised taxi firms”, read the letter.

Vinasun has asked for an end to the unhealthy competition, and said ride hailing firms should be under the same umbrella as traditional taxi firms in Vietnam. This would mean Uber and Grab would have to limit the number of cars they operate and adhere to price controls.

In July last year, Vinasun said nearly 8,000 of its drivers had quit in the first half of 2017 due to harsh competition from ride-hailing firms.

Three months later, it reported losing 2,000 more drivers for the same reason, leaving the company with 7,000 employees.

The company earned VND4.25 trillion (US$187 million) in revenue and VND205 billion in net profit in 2017, down 10% and 34% respectively compared to 2016.

The same story applies to Mai Linh, another major local taxi firm.

Mai Linh lost 6,000 drivers in the first half of 2017, equivalent to 20% of its employees, according to a company report.

Its business results did not read much better during the period, with revenue falling more than 5% on-year to VND1.72 trillion (US$75.8 million).

Both Mai Linh and Vinasun have repeatedly blamed Uber and Grab for their losses, but the finger-pointing has received little support from the public, with many passengers saying they were already unhappy with the poor and unreliable services provided by the firms.

In its latest attempt to win back customers, Vinasun set up a Facebook booking service last year. The chatbot allows passengers to check the fare, preventing drivers from overcharging them, and is expected to reduce the 205,000 calls the company receives every month.

Earlier in January, the Ministry of Transport said Grab and Uber are to be officially authorized in Vietnam after completing trial runs, but the government has pledged to impose the stricter controls it currently imposes on local transport firms.

Ride-hailing services will have to register their businesses with investment authorities and the transport ministry and the tax authorities.

“Tax agencies will keep track of fares so management can be more transparent,” said Tran Bao Ngoc, director of the ministry's Transport Department.

Hanoi has also recently put up traffic signs banning Uber and Grab cars from operating along roads off-limits to traditional taxis.

Japan helps develop organic agriculture in Ben Tre

Japanese government non-refundable aid worth more than 158,200 USD will be poured into the second phase of a project developing organic agriculture in the southern province of Ben Tre as a result of a contract signed on January 31.

The second phase of the project will be carried out in four communes of Binh Dai and Ba Tri districts by the Japanese-funded Seed to Table organisation.

The organisation will provide farmers with knowledge and equipment for organic agricultural production and processing.

The Japanese Consulate General in Ho Chi Minh City will help build a processing plant in the locality.

Speaking at the signing ceremony, Japanese Consul General Kawaue Junichi pledged to provide maximum support for the project.

Earlier, Seed to Table received aid worth nearly 90,000 USD to implement the first phase of the project.

Avnet Asia launches IoT masterclass for engineering students

Avnet Asia Pte., Ltd., one of the world's largest distributors of electronic components and embedded solutions, recently signed a Memorandum of Understanding with Hanoi University of Science and Technology.

Accordingly, students in their second and third year from the School of Electrical Engineering at the university (HUST) will soon be trained on key IoT trends and innovations, as well as skills in deploying IoT applications by a team of Avnet technical experts.

Frederick Fu, president of Avnet Asia Pacific, said: “Vietnam is an important market for Avnet. It is one of the fastest-growing economies in the world and it has massive potential to harness the power of IoT. Avnet has been actively nurturing the next-generation of local engineers through various platforms to support Vietnam in becoming a leading technology hub.”

“Through this education programme, we want to help enhance market value in Vietnam by empowering a group of young talents to design their own applications, to spur innovation and entrepreneurship,” he added.

Avnet developed the programme to include workshops and seminars that complement Vietnam’s thriving technology scene.

These master classes will be focused on the building blocks of IoT, which encompass microprocessor usage, power design, motor control, and measurement.

Students will also be introduced to a comprehensive range of demonstration kits from Avnet and its suppliers, and apply the tools provided to create various applications for the automotive, industrial, communication, and other industries.

Nguyen Huy Phuong, dean of the School of Electrical Engineering at Hanoi University of Science and Technology said: “Avnet has been a key player in the technology industry and we welcome their team of experts who are committed to the continuous development of our students by equipping them with technology know-how and providing them with the practical skill-sets needed to thrive in a high-growth economy.”

As one of the earliest companies to invest in Vietnam’s product and design services since 2009, Avnet has continuously conducted a series of workshops and talks in Vietnam to engage with the industrial and technology communities.

Earlier last month, the company held its Embedded Vision TechDay seminar series in Hanoi and Ho Chi Minh City for local engineers, purchasers, and business owners to learn about the latest developments in embedded vision.

Hau Giang: Over 15,000 farmers join agriculture transformation project

More than 15,000 farmers in the Mekong Delta province of Hau Giang will benefit from the Vietnam Sustainable Agriculture Transformation project (VnSAT), said Vice Chairman of the provincial People’s Committee Truong Canh Tuyen.

This year, the province plans to sign contracts with local businesses to sustainably cultivate rice on an area of 1,000 hectares and increase 30 percent in net profit of each hectare. Local farmers will receive farming technique training and participate in new cooperatives.

Vice Director of the provincial Department of Agriculture and Rural Development Le Van Doi said that adjustment will be made to the agricultural development master plan to concretise plans for rice production in large-scale fields which are suitable for sustainable agriculture transformation.

Rice land management and use policies, new-style rural areas building programme and cooperative support programme will be integrated with the VnSAT to bolster local production.

The province will pay due attention to communication campaigns among local residents and development of the collective economy. It will work to establish models of production, material supply and production consumption.

Nearly 37,000 local people will benefit from the VnSAT in Hau Giang province which has a total capital of 14 million USD. The project is implemented in over 40,000 hectares of rice in 32 communes during 2015-2020.

Vietjet records 2017 net revenue of $1.8bn

Vietjet Air has announced that total net revenue in 2017 stood at nearly VND42.258 trillion ($1.8 billion), an increase of 53.7 per cent year-on-year and exceeding the annual target by 0.6 per cent.

The figure is contained in the pre-audited financial statement for 2017, with all indicators growing strongly compared to 2016 and exceeding plans approved at its annual shareholders meeting.

Pre-tax profit was approximately VND4.755 billion ($211.3 million), up 75.9 per cent year-on-year and representing 126 per cent of the annual plan.

After-tax profit for the parent company’s shareholders reached VND4.527 trillion ($201.2 million), for an earnings-per-share of VND10,065 ($0.4).

Thanks to the expansion of its fleet by 17 aircraft in 2017, including a modern A321neo, the first in Southeast Asia, Vietjet opened 22 new routes - one domestic and 21 international - increasing its total to 82 routes, including 38 domestic and 44 international. 

It carried over 17.11 million passengers in 2017. Air transportation revenue for the year was VND22.577 trillion ($1 billion), up 41.8 per cent year-on-year and exceeding the annual plan by 4.6 per cent.

As at December 31, its total fleet consisted of 51 Airbus A320 and A321 aircraft. It has received 39 aircraft out of a total of 219 aircraft ordered from Airbus and Boeing. On time performance was 85.59 per cent.

Vietjet paid a 10 per cent cash dividend for 2017, a 40 per cent share dividend for 2016, and advanced a 20 per cent cash dividend payment for 2017. With its positive business results, it increased its 2017 dividend payment from 50 per cent to 60 per cent and prepared for a 10 per cent cash dividend payment for 2017 on February 7.

The airline operates 350 flights each day and has already carried more than 50 million passengers and opened 82 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, Hong Kong, mainland China, Malaysia, Indonesia, Myanmar, and Cambodia.

Bremeninvest opens rep office in HCMC

Bremeninvest, a trade and investment services provider from Bremen in Germany, has announced the opening of a representative office in Ho Chi Minh City in the hope of pushing up trade cooperation in Vietnam. The agency operates as a link between the German state of Bremen and Vietnam in two-way trade and business activities.

Bremeninvest is the common name for Bremen’s economic development agency, Wirtschaftsförderung Bremen GmbH (WFB), which specializes in meeting the needs of international customers and offers one-stop support services for business requirements.

Bremen is an industrial and port city in Germany that is home to leading industries in the automobile, aviation, logistics, and wind energy sectors, which are sectors Bremen hopes to partner with Vietnamese enterprises in. Ms. Hoang Thi Huong has been appointed Chief Representative of the Bremeninvest Office in the southern city.

“Vietnam is considered a bridge to Southeast Asia and one of the emerging markets in the region, and its high GDP growth of nearly 7 per cent arouses great interest in Germany,” Mr. Martin Gunthner, Minister of Economic Affairs, Labour, and Ports in Bremen told VET.

“Vietnam is an important partner of Germany in general and Bremen in particular in Southeast Asia,” he went on. “Bremen is a maritime city with large ports so we have a lot of experience and advantages to share with Vietnam about maritime trade and we are also a potential partner in those sectors. With representative offices in Shanghai and Turkey, we decided to set up an office in Ho Chi Minh City as we see huge opportunities in Vietnam.”

“The establishment of the Ho Chi Minh City representative office demonstrates a strategic vision in early participation and promises to be a platform for even greater trade relations between Bremen and ASEAN countries,” German Consulate General Andreas Siegel told the opening ceremony.

Pleased about the new challenges, CEO of WFB Andreas Heyer, CEO of WFB, said: “we are not only constructing a bridge for Vietnamese companies coming to Bremen, but also helping companies from Bremen do business in Vietnam. Vietnam holds potential for growth in the sectors of maritime economics, logistics, renewable energies, automotive, and food and beverages.”

The Bremeninvest Office in will bring Bremen’s quality of life and economic appeal to the attention of business and research communities in Germany and Vietnam, helping companies with all matters related to their development. It provides uncomplicated, expert advice on relocations, property searches, and innovation projects. It also acts as an interface between business, research, and public authorities and always identifies the best solutions for businesses.

The new representative office advises investors as well as those interested in settling in Vietnam and supports them in the search for a location and acquisition in Bremen. They can use the contact network in Vietnam, receive individual advice on business interests, and have opportunities to attend joint trade fairs and specialist events.

Ministry slashes fees for businesses

The Ministry of Finance in a just-released circular lowers fees to make life easier for enterprises, with the fee on business registration, revision of business registration content and re-issuance of business registration certificates halved to VND100,000 per time from VND200,000.

Circular 130/2017/TT-BTC revises and supplements Circular 215/2016/TT-BTC on collection, payment, management and use of fees concerning provision of business information and business registration.

Under the new circular, new issuance, re-issuance and revision of business registration certificates for branches, representative offices and business locations are now charged VND50,000 per application, down from VND100,000.

Regarding the provision of business information on registered accounts with 125 documents per month or more, the charge is down from VND5 million per month to VND4.5 million per month.

Entities subject to fee exemptions are those changing information as a result of location change; registering for dissolution or business suspension; registering for shutdown of branches, representative offices and business locations; and making business registrations electronically.

Small and medium firms converted from household businesses are exempted from business registration and first-time information provision fees.

NA deputy chairman proposes to estimate impact of ODA projects

Deputy chairman of the National Assembly Phung Quoc Hien proposed the Government to review efficiency and estimate impact of 1,155 projects using official development assistance (ODA) funds according to the Public Investment Law to remedy problems in the capital source’s allocation and use.

He was speaking at a session organized by NA Finance-Budget Commission on mobilization, allocation, use and management of ODA and foreign preferential loans in the phase of 2016-2020.

According to Mr. Hien, ODA loans are necessary as the country still needs capital for development investment. Compared to other loans from the financial market, ODA is still helpful with low internet rate and long loaning time. Both creditors and borrowers have clear targets so it is better to control and estimate ODA loans.

Talking about the reverse of ODA, Mr. Hien said that loaning conditions are rather strict with some regulations aiming to create advantages for investors and contractors.

Mentioning ODA loan lessons from Greece, Ireland and some European economies, Mr. Hien required the Finance-Budget Commission to carefully estimate good and wrong sides as well as impacts of ODA to social, economic and political conditions of the country in its supervision report.

For the last past, ODA funds has helped improve infrastructure, management level and boost economic development. No sponsors or investors have expressed opinions about Vietnam’s violations in loan agreements for the last two years.

However, in fact ODA capital management, allocation and use have not been reformed drastically to remedy problems in previous phases. Specifically, beyond estimates spending has still occurred and capital mobilization has not been decided by competent authorities.

Implementation of the 2013 Constitution has not been serious, violation of the law and NA resolutions on finance and mid-term public investment has still occurred. Similarly, loan and investment structures, priority order and investment efficiency in each field and project have shown limitations.

To repair these limitations, Mr. Phung Quoc Hien proposed the Government to estimate the impact of 1,155 projects using ODA funds for the last phase.

In addition, the Government should make clear positive and negative points to promote and overcome after two years of implementing the NA resolution on financial and mid-term public investment plans. This should be conducted at the sixth session in October 2018.

He also suggested the Government to list and estimate ODA funded projects approved by incompetent authorities, give solutions to tackle them and report to the NA.

Mr. Hien prompted to strictly handle violations and renew public investment, public debt and ODA capital management method toward efficiency not disbursement progress and spell out responsibilities of relevant sides.

After the session, the Finance-Budget Commission should quickly send a report to the standing committee of the National Assembly about the ODA use matter.